Bizjets Contribute To Honeywell's Q1 Organic Growth

 - April 22, 2019, 11:49 AM

Despite a 15 percent drop in total sales at Honeywell, organic sales in its aerospace unit grew 10 percent in the first quarter, helped by a combination of business and commercial aviation demand, the New Jersey-based company announced late last week. It marked the third consecutive quarter of double-digit organic growth—sales growth among businesses it didn’t spin off during the quarter—for the segment that supplies engines, avionics, APUs, and Internet connectivity to commercial and business aircraft manufacturers, noted chief financial officer Greg Lewis on an earnings call with analysts.

Honeywell Aerospace recorded rising shipset volumes across its Gulfstream jet platforms, higher avionics deliveries on the Dassault Falcon 900 and 2000, and increased shipments of its HTF7700L engines for Textron Aviation’s Cessna Citation Longitude. Organic sales in commercial aftermarket were also up 8 percent, driven by a combination of global airline demand and the ADS-B mandate. Interest in JetWave and its business jet software products also drove Honeywell’s connected aircraft area, the company said.

Momentum in aerospace is expected to continue, Lewis explained, “with growth in narrowbody production rates and increased business jet deliveries as several new models have recently entered into service."